. Company agrees to pay $50 million fine and invest $50 million in night-vision technology
. Comprehensive export compliance audit, monitoring, and training effort significantly enhanced
. Settlement payment is covered by previous reserves
MARCH 30--ITT Corporation (White Plains, NY, USA; www.itt.com) has made a final settlement regarding its night vision's compliance with International Traffic in Arms Regulations (ITAR). As part of the agreement, the company will pay a $50 million fine and will plead guilty to one ITAR violation relating to the improper handling of sensitive documents and one ITAR violation of making misleading statements. The government has agreed to defer action regarding a third count of ITAR violations pending ITT's implementation of remedial actions.
In addition, the company has agreed with the government to continue to invest in R&D and capital improvements for its night-vision products so it can continue to provide technology to the US military and its allies.The value of these investments is $50 million over the next five years.
In a related action, the US Department of State has placed restrictions on certain exports of night-vision equipment and technical data and ITT Night Vision will not be allowed to ship devices to specific parties for a period of not less than one year.
